---
type: "LegalText"
title: "26 U.S.C. § 109"
description: "Improvements by lessee on lessor’s property"
jurisdiction: "us"
corpus: "united_states_code"
kind: "code_section"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
chapter_number: "1"
chapter_name: "NORMAL TAXES AND SURTAXES"
section: "109"
citation: "26 U.S.C. § 109"
status: "current"
release_point: "119-100"
release_date: "2026-06-26"
source: "official"
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc26@119-100.zip"
source_identifier: "/us/usc/t26/s109"
source_file: "data/legal/raw/us/code/title-26/usc26.xml"
source_hash: "e92cceb32391febd8bda7f9a3583658652c967315946fc14c5601ae95d1741a0"
raw_snapshot_hash: "a261f094809116f42a96648a3d5eee80fa010379d67412551c21dd5c900b27f4"
text_hash: "b13418360a417ef3b52d43205ca7b87d5e594f7032f5dce5f5d9e4e9c0190d46"
retrieved_at: "2026-07-04"
confidence: "official"
tags: ["legal", "us-code"]
---

# 26 U.S.C. § 109 - Improvements by lessee on lessor’s property

## Text

Gross income does not include income (other than rent) derived by a lessor of real property on the termination of a lease, representing the value of such property attributable to buildings erected or other improvements made by the lessee.

(Aug. 16, 1954, ch. 736, 68A Stat. 33.)